Power over Ethernet (PoE) Chipset Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Application (LED Lighting, Security, Connectivity), By End-User (Commercial, Residential, Industrial), By Device (Network Cameras, VOIP Phone, Ethernet Switch & Injector), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 1.34 Billion
CAGR (2026-2031)	15.13%
Fastest Growing Segment	Security
Largest Market	North America
Market Size (2031)	USD 3.12 Billion

Market Overview

The Global Power over Ethernet (PoE) Chipset Market will grow from USD 1.34 Billion in 2025 to USD 3.12 Billion by 2031 at a 15.13% CAGR. Power over Ethernet chipsets are specialized integrated circuits that enable the simultaneous transmission of data and electrical power through standard Ethernet cabling. The market is fundamentally driven by the extensive expansion of the Internet of Things and the increasing necessity for cost-effective cabling in smart buildings, particularly for networked LED lighting and advanced IP security systems. These factors sustain a strong demand for chipsets that streamline infrastructure installation and support the growing density of connected endpoints in commercial and industrial environments.

However, a significant challenge impeding broader market expansion is the issue of interoperability between devices from different manufacturers, which often leads to operational inconsistencies. According to the Ethernet Alliance, in 2024, 33 percent of survey respondents planned to install high-power PoE devices exceeding 51 watts within the next twelve months. This shift toward higher power requirements exacerbates compatibility risks, necessitating strict adherence to certification standards to prevent system failures that could otherwise stall deployment rates.

Key Market Drivers

The expansion of Smart Building and Lighting Automation serves as a critical growth engine for the PoE chipset sector, fundamentally altering how commercial facilities manage energy and data. As organizations transition toward integrated infrastructure, PoE chipsets are increasingly utilized to power connected LED lighting, environmental sensors, and HVAC controls over a single platform, eliminating the need for separate electrical wiring. This trend is heavily influenced by the push for digital transformation in real estate. According to Johnson Controls, September 2024, in the 'Cracking The Smart Buildings Code' report, 75 percent of commercial real estate and retail leaders indicated that smart buildings are essential for accelerating their digital transformation efforts. Consequently, chipset manufacturers are prioritizing energy-efficient designs that support the massive scale of these low-voltage endpoints.

Simultaneously, the Growing Deployment of Wireless Access Points and 5G Small Cells is intensifying the demand for high-performance PoE solutions capable of handling increased power and bandwidth loads. Modern wireless standards require robust power delivery systems that only advanced PoE chipsets can reliably provide to support uninterrupted connectivity. According to the Wireless Broadband Alliance, January 2024, in the 'Annual Industry Report 2024', Wi-Fi 6, 6E, and 7 were identified as the top wireless technologies that network operators and enterprises planned to deploy by the end of the year. This rapid adoption underscores the necessity for chipsets that ensure seamless interoperability and higher power outputs. Furthermore, according to the Ethernet Alliance, in 2024, 80 percent of industry respondents expressed a willingness to pay a premium of at least five percent for certified PoE products, highlighting the market's shift toward quality and reliability in these critical deployments.

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Key Market Challenges

The primary obstacle currently restricting the Global Power over Ethernet (PoE) Chipset Market is the persistent lack of interoperability between power sourcing equipment and powered devices from diverse manufacturers. As the market expands to include a wider array of endpoints, inconsistent adherence to technical standards creates significant integration risks. When components fail to communicate or negotiate power levels correctly, deployments suffer from operational instability and hardware malfunctions. These reliability issues directly deter widespread adoption in mission-critical environments, as facility managers fear that mixing vendor equipment will lead to costly downtime or complex troubleshooting requirements.

This uncertainty compels market participants to exercise extreme caution, directly slowing the sales cycle. The fear of incompatibility creates a barrier where end-users hesitate to invest in infrastructure that lacks guaranteed performance validation. Consequently, the risk of system failure restricts the addressable market for chipsets that cannot prove strict standard compliance. This market hesitation is substantiated by recent industry data. According to the Ethernet Alliance, in 2024, 96 percent of PoE professionals indicated that certification would influence their purchasing decision. This statistic demonstrates that doubts regarding device compatibility significantly dictate market access, effectively penalizing manufacturers that fail to address these integration concerns.

Key Market Trends

The Expansion of PoE into Industrial IoT (IIoT) and Factory Automation is reshaping the chipset market as manufacturers transition from legacy fieldbus to standardized Ethernet connectivity. This migration enables the direct powering of industrial controllers, sensors, and cameras via a single cable, facilitating seamless IT/OT convergence on factory floors. Chipset vendors are responding by developing ruggedized solutions capable of sustaining power delivery in harsh operational settings where reliability is paramount. This industrial shift is validated by recent data; according to HMS Networks, May 2025, in the 'Industrial Network Market Shares 2025' report, Ethernet-based solutions now account for 76 percent of all newly installed nodes in factory automation, reflecting a decisive move toward IP-based power infrastructure.

The Integration of Intelligent Power Management and Remote Monitoring is increasingly driven by the necessity for advanced telemetry and cybersecurity in connected systems. Modern PoE chipsets are evolving to continuously monitor voltage and thermal status, supporting predictive maintenance and anomaly detection algorithms. This capability is vital as organizations leverage artificial intelligence to secure their physical infrastructure against vulnerabilities. The demand for such intelligence is highlighted by investment patterns; according to Rockwell Automation, June 2025, in the '10th Annual State of Smart Manufacturing Report', 49 percent of manufacturers plan to use artificial intelligence for cybersecurity initiatives, underscoring the requirement for chipsets that support secure, data-rich power management.

Segmental Insights

The Security segment represents the most rapidly expanding category within the Global Power over Ethernet Chipset Market. This growth is driven by the widespread adoption of network surveillance cameras and access control systems across commercial infrastructures. These devices utilize PoE technology to transmit both data and electrical power through a single cable, significantly reducing installation complexity. Furthermore, adherence to power delivery standards established by the Institute of Electrical and Electronics Engineers ensures compatibility with modern monitoring hardware, thereby fueling the consistent demand for PoE chipsets in physical security operations.

Regional Insights

North America maintains a leading position in the global Power over Ethernet chipset market due to the extensive integration of Internet of Things devices within industrial and commercial sectors. The region benefits from established networking infrastructure and the local presence of major semiconductor developers. Furthermore, the Institute of Electrical and Electronics Engineers provides essential standards that regulate power delivery and ensure device compatibility. This robust framework supports the deployment of high-power applications, such as network security cameras and wireless access points, thereby driving sustained demand for chipset solutions across the United States and Canada.

Recent Developments

• In August 2025, Microchip Technology unveiled the PD77010, a new Power over Ethernet (PoE) Power Sourcing Equipment (PSE) controller engineered for intelligent, multi-port power management. This compact chipset was designed to deliver high-efficiency power to a wide range of powered devices, optimizing energy consumption in network infrastructure. The launch highlighted the company's focus on advancing PoE technology to meet the increasing power demands of modern connected applications, such as smart lighting and advanced security cameras. The controller features enhanced integration capabilities, reducing the overall bill of materials for equipment manufacturers while ensuring robust compliance with industry standards.
• In July 2025, Silvertel launched the Ag59800-LPB series, a new range of high-performance Power over Ethernet (PoE) Powered Device (PD) modules compliant with the IEEE 802.3bt Class 8 standard. These modules were designed to deliver up to 89 watts of continuous power at high efficiency, making them suitable for demanding applications like high-power digital signage, industrial automation systems, and advanced internet of things (IoT) devices. The product series featured a compact surface-mount footprint and improved thermal management, allowing designers to integrate high-power PoE functionality into space-constrained equipment without compromising performance or requiring extensive external components.
• In May 2025, MaxLinear announced a strategic collaboration with HiSource, a leading supplier of networking equipment, to integrate its Web-Smart 2.5G Ethernet Switch Systems-on-Chip (SoCs) into next-generation Power over Ethernet (PoE) switches. The selected chipsets, including the MxL86252S and MxL86282S, were chosen to enable advanced smart features for network management and optimization in HiSource's product line. This partnership aimed to leverage the integrated processors and high-speed PHYs of the SoCs to provide enhanced performance, reduced latency, and efficient power delivery for modern enterprise and industrial network environments requiring reliable PoE connectivity.
• In November 2024, Texas Instruments unveiled the AM261, a new industrial communication microcontroller designed to streamline real-time data exchange and support Single-Pair Ethernet (SPE) architectures on factory floors. During the product demonstration, the company highlighted the solution's capability to receive both power and data over a single cable, directly facilitating efficient Power over Ethernet (PoE) implementations for industrial actuators and sensors. This development addressed the growing need for scalable and cost-effective connectivity in smart manufacturing, allowing for reduced cabling complexity and synchronized communication across multiple industrial protocols within a single chip solution.

Key Market Players

• Veolia Environnement SA
• Filtra-Systems Company LLC
• WesTech Engineering, LLC.
• Ecolab Inc.
• Aquatech International LLC.
• Lenntech B.V.
• Xylem Inc.
• Danaher Corporation

By Application	By End-User	By Device	By Region
LED Lighting Security Connectivity	Commercial Residential Industrial	Network Cameras VOIP Phone Ethernet Switch & Injector	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Power over Ethernet (PoE) Chipset Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Power over Ethernet (PoE) Chipset Market, By Application:

• LED Lighting
• Security
• Connectivity

• Power over Ethernet (PoE) Chipset Market, By End-User:

• Commercial
• Residential
• Industrial

• Power over Ethernet (PoE) Chipset Market, By Device:

• Network Cameras
• VOIP Phone
• Ethernet Switch & Injector

• Power over Ethernet (PoE) Chipset Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE